M. P. CHANDRAKANTARAJ, J. ( 1 ) THIS is an application under S. 448 (2) (b) of the Companies Act, 1956, made by the Official Liquidator praying for an order directing respondents 1, 2 and 3 to pay to him the sum of Rs. 1,998-75 being the principal and interest thereon in respect of the chit transaction the 1st respondent had with the Company in liquidation, viz. , Smitha Chits and trading Co. Ltd. (hereinafter referred to as the Company ). . ( 2 ) RESPONDENT-1 James Edvin was a member of the chit Group DD of the company having Chit No. 19 with the chit value of Rs. 2000. He was the highest bidder at the auction held for his Group on 21-2-1977 and he received the payment of the prize amount on 5-4-1977. On the same day, he executed a promissory note for Rs. 1,500 in favour of the Company. Respondent-2 david Franklin Soans and respondent-3, n. Basha joined the 1st respondent in the execution of the pronote as sureties. 2nd and 3rd respondents also signed on 8. 3. 77 the surety and security proposal form of the Company agreeing to be sureties for respondent- 1 repaying the chit value. Respondent-1 has subscribed Rs. 360-25 including the dividends due to him in his chit group. The Official Liquidator issued notices to respondents on 19-5-1978 and 17-10-1979 calling upon them to pay the amounts due in respect of the chit transaction as they were jointly and severally responsible for the repayment of the chit value. Respondents having failed to pay the sum demanded, he has presented this application on 18-1-1980. The Official Liquidator's claim is as follows: